STA Research rates Meta Platforms Inc. (FB:NSD) Market Perform, $250 Target

STA Research
by: STA Research

Analysts rate Meta Platforms with a consensus Strong Buy rating and a 12-month average Target price of $357.88 per share.

STA research upgraded Meta Platforms to Market Perform from a Hold rating, and kept the $250 target on the company’s stock.

Based on the Meta Platforms Inc. stock forecasts from 43 analysts, the average analyst target price for Meta Platforms Inc. is USD 357.88 over the next 12 months. Meta Platforms Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Meta Platforms Inc. is Bullish, which is based on 9 positive signals and 2 negative signals. At the last closing, Meta Platforms Inc.’s stock price was USD 198.50. Meta Platforms Inc.’s stock price has changed by -9.61% over the past week, -33.50% over the past month and -25.07% over the last year.

Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It operates in two segments, Family of Apps and Reality Labs. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. Meta Platforms, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

Leave a Reply

Your email address will not be published.